After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:

Cash $7,500

Noncash Assets 105,000

  Liabilities $27,500

  Anna, Capital 45,000

  Brian, Capital 15,000

  Cole, Capital     25,000

   $112,500 $112,500

The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.

a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole

Statement of Partnership Liquidation

For Period May 7-30

Cash + Noncash Assets = Liabilities + Capital Anna (3/6) + Capital Brian (2/6) + Capital Cole (1/6)

Balances before realization $fill in the blank 51509703b05dfcc_1 $fill in the blank 51509703b05dfcc_2 $fill in the blank 51509703b05dfcc_3 $fill in the blank 51509703b05dfcc_4 $fill in the blank 51509703b05dfcc_5 $fill in the blank 51509703b05dfcc_6

Sale of assets and division of gain fill in the blank 51509703b05dfcc_7 fill in the blank 51509703b05dfcc_8 fill in the blank 51509703b05dfcc_9 fill in the blank 51509703b05dfcc_10 fill in the blank 51509703b05dfcc_11

Balances after realization $fill in the blank 51509703b05dfcc_12 fill in the blank 51509703b05dfcc_13 $fill in the blank 51509703b05dfcc_14 $fill in the blank 51509703b05dfcc_15 $fill in the blank 51509703b05dfcc_16 $fill in the blank 51509703b05dfcc_17

Payment of liabilities fill in the blank 51509703b05dfcc_18 fill in the blank 51509703b05dfcc_19

Balances after payment of liabilities $fill in the blank 51509703b05dfcc_20 fill in the blank 51509703b05dfcc_21 fill in the blank 51509703b05dfcc_22 $fill in the blank 51509703b05dfcc_23 $fill in the blank 51509703b05dfcc_24 $fill in the blank 51509703b05dfcc_25

Distribution of cash to partners fill in the blank 51509703b05dfcc_26 fill in the blank 51509703b05dfcc_27 fill in the blank 51509703b05dfcc_28 fill in the blank 51509703b05dfcc_29

Final balances fill in the blank 51509703b05dfcc_30 fill in the blank 51509703b05dfcc_31 fill in the blank 51509703b05dfcc_32 fill in the blank 51509703b05dfcc_33 fill in the blank 51509703b05dfcc_34 fill in the blank 51509703b05dfcc_35

b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole

Statement of Partnership Liquidation

For Period May 7-30

Cash + Noncash Assets = Liabilities + Capital Anna (3/6) + Capital Brian (2/6) + Capital Cole (1/6)

Balances before realization $fill in the blank 80550bfb0f89fff_1 $fill in the blank 80550bfb0f89fff_2 $fill in the blank 80550bfb0f89fff_3 $fill in the blank 80550bfb0f89fff_4 $fill in the blank 80550bfb0f89fff_5 $fill in the blank 80550bfb0f89fff_6

Sale of assets and division of loss fill in the blank 80550bfb0f89fff_7 fill in the blank 80550bfb0f89fff_8 fill in the blank 80550bfb0f89fff_9 fill in the blank 80550bfb0f89fff_10 fill in the blank 80550bfb0f89fff_11

Balances after realization $fill in the blank 80550bfb0f89fff_12 fill in the blank 80550bfb0f89fff_13 $fill in the blank 80550bfb0f89fff_14 $fill in the blank 80550bfb0f89fff_15 $fill in the blank 80550bfb0f89fff_16 $fill in the blank 80550bfb0f89fff_17

Payment of liabilities fill in the blank 80550bfb0f89fff_18 fill in the blank 80550bfb0f89fff_19

Balances after payment of liabilities $fill in the blank 80550bfb0f89fff_20 fill in the blank 80550bfb0f89fff_21 fill in the blank 80550bfb0f89fff_22 $fill in the blank 80550bfb0f89fff_23 $fill in the blank 80550bfb0f89fff_24 $fill in the blank 80550bfb0f89fff_25

Receipt of deficiency fill in the blank 80550bfb0f89fff_26 fill in the blank 80550bfb0f89fff_27

Balances $fill in the blank 80550bfb0f89fff_28 fill in the blank 80550bfb0f89fff_29 fill in the blank 80550bfb0f89fff_30 $fill in the blank 80550bfb0f89fff_31 fill in the blank 80550bfb0f89fff_32 $fill in the blank 80550bfb0f89fff_33

Distribution of cash to partners fill in the blank 80550bfb0f89fff_34 fill in the blank 80550bfb0f89fff_35 fill in the blank 80550bfb0f89fff_36

Final balances

Question

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:

Cash	$7,500
Noncash Assets	105,000
Liabilities		$27,500
Anna, Capital		45,000
Brian, Capital		15,000
Cole, Capital		25,000
	$112,500	$112,500

The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.

a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole
Statement of Partnership Liquidation
For Period May 7-30
	Cash +	Noncash Assets =	Liabilities +	Capital Anna (3/6) +	Capital Brian (2/6) +	Capital Cole (1/6)
Balances before realization	$fill in the blank 51509703b05dfcc_1	$fill in the blank 51509703b05dfcc_2	$fill in the blank 51509703b05dfcc_3	$fill in the blank 51509703b05dfcc_4	$fill in the blank 51509703b05dfcc_5	$fill in the blank 51509703b05dfcc_6
Sale of assets and division of gain	fill in the blank 51509703b05dfcc_7	fill in the blank 51509703b05dfcc_8		fill in the blank 51509703b05dfcc_9	fill in the blank 51509703b05dfcc_10	fill in the blank 51509703b05dfcc_11
Balances after realization	$fill in the blank 51509703b05dfcc_12	fill in the blank 51509703b05dfcc_13	$fill in the blank 51509703b05dfcc_14	$fill in the blank 51509703b05dfcc_15	$fill in the blank 51509703b05dfcc_16	$fill in the blank 51509703b05dfcc_17
Payment of liabilities	fill in the blank 51509703b05dfcc_18		fill in the blank 51509703b05dfcc_19
Balances after payment of liabilities	$fill in the blank 51509703b05dfcc_20	fill in the blank 51509703b05dfcc_21	fill in the blank 51509703b05dfcc_22	$fill in the blank 51509703b05dfcc_23	$fill in the blank 51509703b05dfcc_24	$fill in the blank 51509703b05dfcc_25
Distribution of cash to partners	fill in the blank 51509703b05dfcc_26			fill in the blank 51509703b05dfcc_27	fill in the blank 51509703b05dfcc_28	fill in the blank 51509703b05dfcc_29
Final balances	fill in the blank 51509703b05dfcc_30	fill in the blank 51509703b05dfcc_31	fill in the blank 51509703b05dfcc_32	fill in the blank 51509703b05dfcc_33	fill in the blank 51509703b05dfcc_34	fill in the blank 51509703b05dfcc_35

b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole
Statement of Partnership Liquidation
For Period May 7-30
	Cash +	Noncash Assets =	Liabilities +	Capital Anna (3/6) +	Capital Brian (2/6) +	Capital Cole (1/6)
Balances before realization	$fill in the blank 80550bfb0f89fff_1	$fill in the blank 80550bfb0f89fff_2	$fill in the blank 80550bfb0f89fff_3	$fill in the blank 80550bfb0f89fff_4	$fill in the blank 80550bfb0f89fff_5	$fill in the blank 80550bfb0f89fff_6
Sale of assets and division of loss	fill in the blank 80550bfb0f89fff_7	fill in the blank 80550bfb0f89fff_8		fill in the blank 80550bfb0f89fff_9	fill in the blank 80550bfb0f89fff_10	fill in the blank 80550bfb0f89fff_11
Balances after realization	$fill in the blank 80550bfb0f89fff_12	fill in the blank 80550bfb0f89fff_13	$fill in the blank 80550bfb0f89fff_14	$fill in the blank 80550bfb0f89fff_15	$fill in the blank 80550bfb0f89fff_16	$fill in the blank 80550bfb0f89fff_17
Payment of liabilities	fill in the blank 80550bfb0f89fff_18		fill in the blank 80550bfb0f89fff_19
Balances after payment of liabilities	$fill in the blank 80550bfb0f89fff_20	fill in the blank 80550bfb0f89fff_21	fill in the blank 80550bfb0f89fff_22	$fill in the blank 80550bfb0f89fff_23	$fill in the blank 80550bfb0f89fff_24	$fill in the blank 80550bfb0f89fff_25
Receipt of deficiency	fill in the blank 80550bfb0f89fff_26				fill in the blank 80550bfb0f89fff_27
Balances	$fill in the blank 80550bfb0f89fff_28	fill in the blank 80550bfb0f89fff_29	fill in the blank 80550bfb0f89fff_30	$fill in the blank 80550bfb0f89fff_31	fill in the blank 80550bfb0f89fff_32	$fill in the blank 80550bfb0f89fff_33
Distribution of cash to partners	fill in the blank 80550bfb0f89fff_34			fill in the blank 80550bfb0f89fff_35		fill in the blank 80550bfb0f89fff_36
Final balances

Accepted Answer

Dissolution of Partnership Firm means complete end of the relationship between all the partners.All…